The pedagogical choices, chapter arrangements, and learning objective fulfillment were developed and vetted with feedback from educators dedicated to the project . It can be positive, negative, or even non-responsive, depending on what product . 1- Availability of substitutes. Factors Affecting Price Elasticity Of Demand | Economics Factors that Influence Demand Elasticity Below are the factors that exert the greatest influence on the demand elasticity of a product or service. Elasticity Flashcards | Quizlet Demand is rising less than proportionately to income. The Effect of Income on Demand Let's use income as an example of how factors other than price affect demand. Factors Which Affect Income Elasticity The most significant factors which affect the said term are luxuries and necessities. It is calculated as the ratio of the percent change in quantity demanded to the percent change in income. What is income elasticity of demand (YED)? Factors Affecting Demand | Microeconomics | | Course Hero Wiki User. For example, if there is an increase of 25% in consumer's income, the demand for milk is increased by only 35%. Apple iPhone Price Elasticity of Demandd - UKEssays.com Demand for these types of goods will be income inelastic. It happens because rich people are not influenced much by changes in the price of goods. The main factor affecting income elasticity of demand is whether or not goods are necessities or luxuries. Elasticity of Demand for a Commodity: 12 Factors Examples include food in general, electricity and water. Examples include food in general, electricity and water.